£2700 in 2% ISA (declining rate) - Switch to Santander 123?

EdgarTPeaceful

Hi all,

I have a £2700 in an ISA that (now) pays 2% providing I pay into it each month. The rate seems to be declining month on month.

With the new changes to savings, should I bother keeping this money in the ISA tax-free wrapper, or just transfer it to my Santander 123 current account?

This would mean that my current account money would earn 3%, but then I' d pay tax (until next year).

Upshot: Is it worth keeping the ISA wrapper for such a small sum, given the changes happening next year?

Thanks!

jimjames

Get 5% on that in a Nationwide current account. Even better than Santander 123.

Archi_Bald

The changes might not happen next year -- a lot depends on who will be in government. With Labour and SNP blasting "the rich" at any conceivable opportunity, I wouldn't be surprised if they went after savers.

Having said this, there is little point having an ISA for £2,700. Split it between a TSB Plus and a Nationwide FlexDirect and get 5% AER.